After starting the day up 75, Dow pulled back & is struggling to break even. This has been a rough day for news. Avon (AVP), up 40 cents, is laying off 2400. KB Homes (KBH), down 1.33, reported a 9.99 per share loss in the fourth quarter. In addition, Countrywide, after very ugly press, is at a new low below 6. As the biggest holder of mortgages, their problems affect many banks. The National Association of Realtors index tracking pending U.S. home sales fell 2.6% in Nov, a larger than expected decline. This report followed last week's disappointing readings on employment & manufacturing. Negative news spurs a flight to safety, Treasury bond yield is 3.85% & gold is around record levels of 865.
One ray of hope in the stock market, the Alerian MLP Index is up 2.75 (almost 1%). Those boring pipelines around the country look good. Go figgah!
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